Apollo Protocol AMA
Apollo Protocol AMA Summary
On Tuesday, June 11, the Apollo Protocol, a lending and borrowing platform, was activated on the SORA NETWORK. Apollo is the first lending and borrowing platform on the SORA network and is part of the Ceres ecosystem. It allows users to deposit and borrow assets on the SORA network. Depositors can provide liquidity and secure passive income through interest, while borrowers can leverage their assets without selling them and pay interest for this service.
Marko Borovina, Co-Founder and COO of Ceres Blockchain Solutions, and Filip Jovanovic, Co-Founder and CEO, participated in an AMA on the same day to answer user questions. Here is a complete summary of the AMA, led by Billysan.
Key Points from the AMA
How does the Apollo token work within the platform? How is the lending and borrowing process integrated?
Marko: If you lend DAI or ETH, you must pay an interest rate. All the interest income will be used to buy Apollo tokens, which will be moved to a treasury controlled by the governance platform. Currently, a blockchain solution controls the governance platform to oversee its initial operations, but community suggestions are welcomed and considered.
In the last six months, around 10–15 people, including members of the Sora Council and developers from other DeFi protocols, have contributed to Apollo. Their suggestions have helped us incentivize users and prepare for increased liquidity.
Interest paid by borrowers is used to buy back Apollo tokens, which are then distributed to lenders as rewards, generating volume on Polkaswap as well. This creates a win-win situation for the ecosystem.
What makes Apollo unique compared to other lending and borrowing platforms?
Marko: Apollo is the first lending platform built on the Sora network. A key difference is that both lenders and borrowers receive rewards, which is uncommon in other protocols. Borrowers get rewards in Apollo tokens, which can offset or exceed the interest rate, especially with fewer users currently.
Are there 300,000 tokens for borrowers and lenders?
Marko: Yes, there are 200,000 tokens for lenders and 100,000 tokens for borrowers.
What is Apollo’s roadmap?
Marko: We started with DAI and ETH because they are popular in the Sora network. We aim to add XOR as the next token, with community votes deciding on the addition of new tokens.
Is there any risk if I lend tokens?
Billysan: There is always a risk with lending platforms. If someone borrows your tokens, you might not be able to withdraw them immediately. However, the protocol is designed to incentivize a balanced ecosystem and prevent flash loans, which enhances security. Borrowers who lack sufficient collateral will be liquidated.
How often are rewards paid out?
Marko: Rewards are paid every block, approximately every 6 seconds. Loan interest is calculated daily, and borrowers are notified when they are close to liquidation.
Which token is used for payments?
Marko: Rewards are paid in Apollo tokens. If a borrower is liquidated, their collateral (e.g., DAI) is used to buy Apollo tokens. Additionally, 80% of Apollo goes to the treasury, 10% to developers, and 10% to buy back $CERES.
How are interest rates determined?
Marko: Interest rates are dynamically adjusted based on risk and utilization models. You can check the litepaper for more details. Higher borrowing and lower lending lead to lower interest rates, while high borrowing and low lending increase interest rates.
When will Apollo be integrated into the Polkaswap exchange interface?
Marko: This integration is expected in the next few months.
What liquidity incentives will there be for the Apollo token?
Marko: Currently, there is an incentive for liquidity providers, with an APR of 640%. Additional rewards for Apollo liquidity providers might be considered.
When will rewards for lenders and borrowers start being distributed?
Marko: Rewards have already started being distributed every 6 seconds.
What is the liquidation point?
Billysan: If your collateral is $10 and you owe $10, you will be liquidated. The liquidation point is typically around 85%.
What are the plans for DEO Arena V2?
Filip: The game will be updated visually and mechanically, with latency improvements and new maps. Up to 4 players can play simultaneously, making it a battle royale. Development is in full swing, and it looks promising.
How is the Veles project going? Will it be implemented on the Sora network?
Filip: The Veles project is doing well. We presented it at two major Web3 events in Europe, and it was well-received. The Veles project aims to be a general pallet usable by any Polkadot chain and project, providing a technical solution for controlling and accounting for carbon credits.
Are you planning to launch a token for Veles?
Filip: No, we do not plan to launch any Veles tokens. Veles is designed to prevent fraud and provide regulatory mechanisms for carbon credits. If someone wants to launch a carbon credit token, they can use the Veles pallet.
How often should the interest rate be paid?
Marko: The interest rate can be paid at any time until liquidation. If you don’t pay your interest rates, you will be liquidated, but it is not a daily or weekly requirement.
What else are you developing on the blockchain side?
Filip: We are catching up on various developments. It’s been a busy period with more conferences and everything. Overall, I am very satisfied with our work and our team’s involvement.
Billysan: Thanks for the update; it was very informative. I got answers to all my questions, and I hope everyone else did too. Thank you for your time, and we’ll see you soon.
Filip: Thanks, everyone. Enjoy the Apollo protocol. Peace, and all the best. Goodbye.
